UPDATE 2-Germany in intense talks on aid for Greece-sources
* Germany discussing possible aid for Greece -sources
* German officials, however, say no aid being considered
* Germany has no doubt about Greece's solvency-official
(Adds details, quotes from German government official)
By Matthias Sobolewski and Dave Graham
BERLIN, Feb 10 (Reuters) - Germany's government is in intense international and domestic negotiations about possible aid to debt-stricken Greece, sources in the coalition government told Reuters on Wednesday but said no decisions were imminent.
"It has not yet been conclusively decided," said one person who attended a meeting on the subject with German conservatives and Finance Minister Wolfgang Schaeuble. "At the moment, various ideas are being discussed about what could be done."
However, two senior German government officials, speaking on condition of anonymity, said EU leaders would discuss Greece over lunch at a European Union summit on Thursday but no aid plans were being considered for it or any other country.
"There's been no decision on aid for Greece, and there isn't one pending either," one of the officials said.
One of the government officials said Germany had no doubt about Greece's solvency and saw no financing needs.
"We see no danger of a default at the moment," he said.
He noted he believed Greece had yet to convince either the European Commission or the European Central Bank that it had drawn up a suitable plan to tackle its budget deficit.
"If it turned out that Greece, the European Commission and the ECB were of the same view on how big the (consolidation) volume should be, that would be a strong signal," he said.
Chancellor Angela Merkel and French President Nicolas Sarkozy had discussed the summit agenda by telephone on Wednesday and were in agreement on how to proceed, he added.
What mattered was that Greece presented a sustainable programme to consolidate its finances, the other official said.
"This is the crucial yardstick," he said.
STRICT CONDITIONS
Coalition government sources told Reuters that aid for Greece could be provided bilaterally. An agreement on exactly which countries would help Greece, and by how much, could be reached on the sidelines of a European Union summit on Thursday, they said.
"In any case, aid would be tied to strict conditions to maintain pressure on the country," said a coalition source.
Asked whether the government saw a role for the International Monetary Fund (IMF) over Greece, the official said the government would consult with the fund on the issue -- as part of regular discussions with the IMF.
The official also said EU rules made both EU-wide and bilateral aid to Greece problematic.
"The same applies to EU aid and to bilateral aid, they are not on the agenda. They are not planned, as far as we know," said the official, adding that member states and the EU as a bloc were prohibited "in principle" from bailing each other out.
European finance ministers are due to hold a teleconference later on Wednesday to discuss the Greek budget crisis, but the German official said he expected no decision to be made there.
Once the relevant international institutions were convinced Greece had done its homework on the budget, this would be reflected in financial markets, one of the officials said.
Another German politician said the government was currently discussing all possibilities, from buying Greek state bonds to providing debt guarantees.
(Writing by Madeline Chambers; Editing by Susan Fenton)
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